Qualcomm has rejected Broadcom’s $130 billion takeover bid, contending the offer “dramatically undervalues” the company’s position in mobile technology and comes with “significant regulatory uncertainty,” according to Law 360.
Last week Broadcom offered to buy Qualcomm in a deal worth $130 billion. The U.S. wireless and broadband giant said it would be willing to offer $70 per share in cash and stock for the world’s dominate supplier of broadband processors. It’s uncertain how such a deal would have affected the legal battle between Apple and Qualcomm, but now the point is apparently moot.
In January, Apple filed a lawsuit against Qualcomm, alleging the chip supplier demanded unfair terms for its technology. However, Qualcomm denies the allegations and says Apple wouldn’t have an iPhone business if it weren’t for fair licensing of the company’s essential tech.
Qualcomm claims it went out of its way to offer alternative licensing (which Apple rejected), and that, in suing Qualcomm, Apple is motivated by reducing the cost to make iPhones.